Federal Reserve Minutes Heighten Uncertainty Over December Rate Cut as Data Gap Looms After US Shutdown

COINOTAG News notes that the Federal Reserve’s October policy minutes will release early Beijing time, prompting crypto traders to reassess the macro backdrop. With policy guidance and the trajectory of interest rates in focus, Bitcoin and other digital assets face shifting risk sentiment as liquidity flows respond to the Fed’s signals.

Last month, the Fed lowered the benchmark to a 3.75%-4.00% target band, yet the narrative for an additional December cut softened after Powell warned that further reductions are not assured. Investors trimmed odds, pressuring crypto assets as debt-and-rate dynamics shift.

Additionally, the 43-day U.S. government shutdown limited key labor-market and inflation data, creating an information gap that Morgan Stanley notes may complicate the December policy decision for risk assets, including Bitcoin and altcoins.

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